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Forex: EUR/CHF upside capped at 1.2290

The Swiss franc is losing ground against its European counterpart on Tuesday, as risk appetite is swelling on positive data from the services PMI and EMU’s retail sales.

The cross continues to reflect the current lack of conviction prevailing amongst traders, although inflows into the safe haven have been gathering traction lately, following tepid results in the euro area, ahead of the ECB meeting due on Thursday.

G.Yu and G.Berry, Strategists at UBS, remain neutral on the cross, remarking that “Resistance is at 1.2344 ahead of 1.2398. Support is at 1.2227 ahead of 1.2160”.

At the moment, EUR/CHF is up 0.16% at 1.2275 with the next resistance at 1.2289 (high Mar.1) ahead of the psychological level of 1.2300 and then 1.2318 (MA30d).
On the downside, a breakdown of 1.2252 (low Mar.5) would expose 1.2240 (low Mar.4) en route to 1.2230 (low Mar.1)

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